1. Field of the Invention
The present invention generally relates to the field of product distribution attribution analysis. Particularly, to the multidimensional analysis of the distribution of telecommunication products and services.
2. Brief Description of the Related Art
When products and/or services are delivered through a complex distribution network, it is generally difficult to isolate and quantify the influence of individual elements of that network on the overall process. For example, in the telecommunications industry, there are many sources that contribute to the cumulative expense or revenue involved in distributing a particular product/service. These sources include all quantifiable elements that drive how products are distributed amongst jurisdictions and suppliers. These sources act as variables that contribute to the efficiency and profitability of each individual product/service. Due to the nested nature of these variables, it is generally difficult to determine or even estimate how much any particular source contributed to or detracted from the distribution expense or revenue of that product. This uncertainty also makes it difficult to project future expenses, incomes or other quantities related to the business that are directly attributable to changes in any group of driving elements.
Currently, no standardized systematic methodology exists for attributing or quantifying how much an individual source influences product distribution. Contemporary methods of attributing source variation only analyze two sources of variation at a time, even though more than two sources need to be considered for most business applications. Such a technique, known as a two-dimensional analysis, provides a very flat and incomplete, and potentially misleading view of the real sources driving change within a product distribution scheme. Often, analysts will use a two-dimensional attribution analysis and add ad hoc non-mathematical non-reproducible procedures to make inferences beyond the initial two dimensions. Such practices typically yield results that are dependent on the order of the sources selected for the initial analysis and are unable to fully explain the variation at issue. Moreover, results from such ad hoc processes lead to confounding of attributions from one source to another, leading to results that are difficult to interpret or rely upon. Often the influence of one or more sources will be overstated, while other source influences will be understated. Also, improper “aliasing” occurs when not all sources are taken into account and the influence from the missing source(s) is attributed to a defined source, leading to further inaccuracies. Hence, current methods are more akin to an art form than a repeatable, mathematically supported analysis.
There is therefore a need for a method of and system for generating an attribution value for analyzing a complex product distribution model. Such a method and system preferably provides a mathematical construct for attributions that explains all variables associated with the distribution of products. Additionally, the method and system preferably takes into account the cancellation or interaction of variables, which can often alter the results of an analysis. Further, contrary to current ad hoc methods, a method and system of attribution valuation is needed that is not time consuming and is reproducible in a reliable manner.
Other embodiments and features of the present invention will become apparent from the following detailed description considered in conjunction with the accompanying drawings. It is to be understood, however, that the drawings are designed as an illustration only and not as a definition of the limits of the invention.